retail coverage roi test pre-read march 30, 2009
TRANSCRIPT
Retail Coverage ROI Test Pre-Read March 30, 2009
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Key Messages
Retail coverage is a $44M cost and determining its appropriate ROI is critical to resource allocation
As we increased coverage in Food, C-Store and Wal-Mart both share and promotional sell through have improved
In order to calculate an all inclusive ROI, a comprehensive, lengthy test is required
We are recommending a 720 store test that includes, Wal-Mart, Food and C-Store and runs from April 13th thru Oct. 31st
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Sample Size – 720 Stores
Sample set consists of the following customers:
– 180 Wal-Mart Super Centers
– 180 Wal-Mart Div 01
– 45 Kroger’s
– 45 Meijer
– 45 SuperValu/ Albertson's
– 45 Giant Eagles
– 180 C-Stores
• 60 Speedway Super Americas
• 60 7-11
• 60 Meijer Gas
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Sample Size by Class of Trade
Each customer will include a control store set and two different coverage variations sets
The Wal-Mart test will include high and low price zones
C-Stores will require “No Coverage” in lieu of decreased hours due to short call times currently
15 Control no Δ 15 Control no Δ 15 Control no Δ 20 Control no Δ15 + 50% in Hrs 15 + 25% in Hrs 15 + 50% in Hrs 20 + 50% in Hrs15 - 50% in Hrs 15 - 25% in Hrs 15 - 50% in Hrs 20 No Coverage
15 Control no Δ 15 Control no Δ 15 Control no Δ 20 Control no Δ15 + 50% in Hrs 15 + 25% in Hrs 15 + 50% in Hrs 20 + 50% in Hrs15 - 50 % in Hrs 15 - 25% in Hrs 15 - 50% in Hrs 20 No Coverage
15 Control no Δ 15 Control no Δ 15 Control no Δ 20 Control no Δ15 + 50% in Hrs 15 + 25% in Hrs 15 + 50% in Hrs 20 + 50% in Hrs15 - 50 % in Hrs 15 - 25% in Hrs 15 - 50% in Hrs 20 No Coverage
15 Control no Δ 15 Control no Δ 15 Control no Δ15 + 50% in Hrs 15 + 25% in Hrs 15 + 50% in Hrs15 - 50 % in Hrs 15 - 25% in Hrs 15 - 50% in Hrs
Meijer Gas
C-Store
Walmart Div 01 Low Price Zn
Giant Eagle
SuperValu/ Alberstons
Walmart Div 01 High Price Zn
Walmart SC Low Price Zn
Walmart Div 01 High Price Zn
Walmart Div 01 Low Price Zn
Walmart SC Low Price Zn Meijer
Walmart SC High Price Zn
7-11
Walmart Food
Speedway Super AmericaWalmart SC High Price Zn Kroger
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Market and HSY Resources
Metrics will include:
– Store Level POS Change by customer, then applying an average profit margin (COT Average Gross Margin) to measure ROI impact
– Sell through – Seasonal and Key Promotional Programs
– Big 33 and P3 execution
– Share at Food & C-store
– Results measured and reported monthly by Retail Development Office
245 RSR’s and 20 RSM’s across all 40 Districts to participate
– Food stores selected across key divisions (Kroger & SV-ABS)
– Wal-Mart based high ACV / Hi-Low zone within SC and D1
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DSM / RSR Rules of Engagement
DSM / RSR cannot alter retail coverage – No Exceptions
– Need a true look at enhanced / loss of coverage impact
Suggested “test” model times routing must be adhered to
– No incremental time spent outside of model set forth
– Retail Development will analyze and report variances to DSM / ASD
DSM / RSR participating will not be held to same analytic targets as other team members around:
– POS Sales / Share
– REX Analytics
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Timeline
RDM Office to provide routing changes on paper to DSM’s by April 3rd
DSM To Review and Discuss with RSR / RSM participants during the week of April 6th
– Explain the Test and Share Rules of Engagement
– Set Your Expectation on their participation and feedback
– Call Procedure and In-store activities remain the same, only in-store times change
– Daily synchronization of REX a must
RDM Office to complete routing changes in Siebel by April 10th
Test” coverage begins on Monday April 13th thru Oct. 31st
– RSR / RSM must download Sunday April 12th to receive changes
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Routing Changes in Siebel
Routing changes will be made by RDM Office
– DSM to ensure the following once changes are made:
– RSR is not over – under routed for cycle
– Potentially more of a concern for Wal-Mart than Food stores
– If either, DSM to adjust stores not included in the test but within Customer / Class of Trade to fill out the route
– If questions, please contact RDM Office
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Giant Eagle Participants
RDT RSR DSM Customer # of Stores
031602 Erika Kopanic Richard Gauthier Giant Eagle 9
031612 Paul DeMark Richard Gauthier Giant Eagle 9
031614 Brian Miller Richard Gauthier Giant Eagle 9
031502 Elaine Simeone Cass VanGilder Giant Eagle 6
031510 Michael Barth Cass VanGilder Giant Eagle 6
031605 Diane Thomas Richard Gauthier Giant Eagle 6
* Please refer to master list for actual store responsibility
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Kroger Participants
RDT RSR DSM Customer # of Stores
050902 Natalie Stricklen Charles Redd Kroger 6
101310 Jenna VonLehmden Timothy Jeffreys Kroger 6
102212 Gwen Deitz Peter Ortoleva Kroger 6
143209 Mark Lawlor Landon Anderson Kroger 6
143403 Harry Klos Brian Smith Kroger 6
050915 Susan Holley Charles Redd Kroger 3
052807 Lisa Olivarez Michael Mares Kroger 3
052908 Joe Duran Russell Williams Kroger 3
052912 Gary Ruby Russell Williams Kroger 3
143208 Jose Mireles Landon Anderson Kroger 3
* Please refer to master list for actual store responsibility
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Meijer Participants
RDT RSR DSM Customer # of Stores
101403 Laura Miller Ryan Gunstream Meijer 6
101414 Jeff Cook Ryan Gunstream Meijer 6
101705 Juhana Harjama Lisa Hagelberg Meijer 6
101706 Sarah Decorah Lisa Hagelberg Meijer 6
101713 Eric Doptis Lisa Hagelberg Meijer 6
101715 Michael Flynn Lisa Hagelberg Meijer 6
101405 Rick Pierson Ryan Gunstream Meijer 3
101407 Dean Nichols Ryan Gunstream Meijer 3
101408 Jessalyn Seramur Ryan Gunstream Meijer 3
* Please refer to master list for actual store responsibility
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SuperValu – Albertsons Participants
RDT RSR DSM Customer # of Stores
143406 Brent Vandenberg Brian Smith SV - ABS 6
143605 Kelly Larrondo Lisha Bassett SV - ABS 6
030503 William Merola Christopher Gaughan SV - ABS 3
030505 Lauren Sellers Christopher Gaughan SV - ABS 3
030603 Kimberly Lekarcyk Meghan Krivoshein SV - ABS 3
102102 Matthew Schindler Andrew Winkler SV - ABS 3
102107 Theresa Veltman Andrew Winkler SV - ABS 3
102111 James Mynhier Andrew Winkler SV - ABS 3
142515 Steve Montoya Steve Wilson SV - ABS 3
143102 Heather Euston Alphonso Dennis SV - ABS 3
143306 Sydney Thatcher James Bode SV - ABS 3
143407 Alex Langan Brian Smith SV - ABS 3
143507 Kathy Nelson Melinda Demos SV - ABS 3
* Please refer to master list for actual store responsibility
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Wal-Mart By DSM
* Please refer to master store list for RSR responsibility
Central DSM # of Stores South DSM # of Stores
Elizabeth Skogland 12 Jeffrey Dunton 22Timothy Jeffreys 6 Robert Funderburk 14Mike Thornell 5 Michael Mares 12Ryan Gunstream 4 Michael Klei 9Steven McAllister 4 Robert Brummett 9Andrew Winkler 2 Daniel Ward 8Jennifer Bieneman 2 David Rayborn 6Lisa Hagelberg 2 Russell Williams 6Megan Roe 2 Roger Kovalchik 4Peter Ortoleva 1 Charles Redd 3
Northeast DSM # of Stores West DSM # of Stores
Christopher Gaughan 17 Melinda Demos 19Jason Shultz 15 James Bode 18Meghan Krivoshein 15 Jay Vanbebber 17Brian Sowal 13 Landon Anderson 13John Sommer 13 Alphonso Dennis 10Rob VanRooyen 13 Angela Manuel 8Steven Heske 10 Steve Wilson 7Mark Smith 9 Brandon Mayer 5Cass VanGilder 8 Brian Smith 5Richard Gauthier 8 Lisha Bassett 4